Painted Pony, AltaGas shares climb on gas supply deal

Aug 19 (Reuters) - Canada's AltaGas Ltd said on
Tuesday that it has signed a long-term strategic deal with
Painted Pony Petroleum Ltd, helping secure supply for
its plans to export natural gas and natural gas liquids to
international markets.

The 15-year deal gives AltaGas, a midstream energy firm, the
right to market gas from Painted Pony's holdings in the
liquids-rich Montney shale formation in northeastern British
Columbia.

The Calgary-based company will build and operate a 198
million cubic feet per day (mmcf/d) processing facility in the
Montney region, expected to cost C$325 million ($296 million) to
C$350 million, where Painted Pony will have first right to 150
mmcf/d capacity.

AltaGas will help Painted Pony fund development of its
Montney holdings with a cash injection of C$50 million for some
4.2 million shares.

AltaGas is separately developing a liquefied natural gas
(LNG) terminal on British Columbia's coast along with its
Japanese partner Idemitsu Kosan. The Triton LNG project
is permitted to export up to 2.3 million tonnes of LNG per year.